Skip to main content

Full text of "Annual report"

See other formats


SAN FRANCISCO PUBLIC LIBRARY 



3 1223 06337 3980 



o 



o 



5/S 





:isco Public Library 

i 

^Information Center 
|o Public Library 
Street, 5th Floor 
), CA 94102 

Ience book 

iken from the Library 




REF 

387.736 

Sa52a 

1975/77 




AIRPORTS 
COMMISSION 

CITY AND COUNTY 
OF SAN FRANCISCO 

BIENNIAL REPORT 

75-77 



Statistical Summary 



Revenues 

Expenditures 

Operations 

* Debt Service 

Taxes Paid to San Mateo County 

Total i 

Book Value— Property 
Plant & Equipment 

Passenger Total 

U.S. Mail by Air (Lbs.) 

Air Cargo (Freight 
and Express Lbs.) 

Aircraft Movements 



1976-77 



$32,741,429 



$16,283,081 
11,176,035 
531,810 

$27,990,926 



$175,110,203 
19,334,730 
192,279,641 

694,789,886 
338,675 



1975-76 

$ 30,781,700 



$18,560,282 
11,405,965 
526,080 

$30,492,327 



$173,217,779 
18,166,956 
190,282,119 

677,514,987 
337,750 



* Does not include repayments to general fund 
made from prior years operating surplus: 
1975/76— $2,000,000; 
1976/77— $4,000,000. 



AIRPORTS 
COMMISSION 

CITY AND COUNTY 
OF SAN FRANCISCO 

BIENNIAL REPORT 

75-77 



CONTENTS 




PAGE 



1 Management 

3 President's Report 
5 Director's Report 

4 Organization 

7 Operations and Maintenance 

8 Terminal and Field Operations 

9 Maintenance and Security 

10 Airfield Emergency Procedures 

13 Air Terminal Activity 

14 Freight and Mail Charts 

15 Passenger Chart 
17 Environment 

21 Business and Finance 

22 Financial Chart 

23 Synopsis and Accountants' Opinion 

24 Financial Statement 

27 Notes to Financial Statement 

30 Supplementary Information 

33 Planning and Development 

34 Planning 

35 Construction 

36 Tenant Airlines 

38 Nonstop Service Map 



PRESIDENT'S REPORT 





Morris Bernstein 
President 



George R. Moscone 
Mayor of San Francisco 




Ruth S. Kadish 
Vice President 




William E. McDonnell 




William K. Coblentz 



Airports 
Commission 




William Chester 

Vice President 1974-1977 



This report reviews the 
sixth and seventh fiscal 
years since the Airports 
Commission was created. 
We take justifiable pride 
in the substantial progress which has 
been made in improving San Fran- 
cisco's International Airport. 

Construction of the new North 
Terminal Complex, with Boarding 
Areas H and I, and the Ground Trans- 
portation Center with its expanded 
garage facilities, has proceeded as 
scheduled. Completion of these sorely 
needed improvements will relieve 
severe terminal and traffic conditions 
resulting from the increasing public 
demand for air transportation. 

The first Revenue Bonds issued by 
the Airports Commission were sold in 
1976. The bonds were very well 
received in the investment com- 
munity, being rated "A 1" by Moody's 
Investors Service and "A" by Standard 
and Poor, the highest ratings ever 
received by any airport revenue 
bonds. The net average interest rate 
of 7.37% was significantly lower than 
that paid on revenue bonds issued by 
other major airports during the same 
period of time. These facts are 
evidence of the fiscal soundness 
of the airport. 

Terminal operations in 1975-77 
reached new highs. The number of 
passengers using the Central and 
South Terminals increased by 6V2 % 
per year during the two-year period 
covered by this report. In 1976-77, 
more than 19 million air passengers 
passed through our terminals. 

Accommodating these increasing 
passenger loads, while, at the same 
time, providing safety, convenience, 
compactness and efficiency to the 
traveling public remain the objectives 
of the San Francisco Airports Com- 
mission. Our basic philosophy and 
our commitment to the traveling 
public is to "treat the passengers 
like customers." 

For the Airports 
Commission, 



Morris Bernstein, President 



ORGANIZATION 



B 



y charter provision 
the following divi- 
sions have been 
established under 
the Airports 
Commission: 

Business Administration; 
Operations; and Planning and 
Development. In addition the 
Commission has authority to 
create a bureau of engineering, 
and other bureaus necessary for 
matters not pertaining exclu- 
sively to existing divisions. The 
bureau of security was created in 
1972 to comply with Federal 
Aviation Regulation 107, which 
imposes airfield security 
measures and controls traffic 
on airport roads. 




Asst 
Deputy Director 
Business and 
Finance 



DIRECTOR'S 



REPORT 




Richard R. Heath 
Director of Airports 



During the two 
fiscal years 
covered by this 
report, construction 
of new facilities and 
improvements to existing 
facilities proceeded rapidly. The 
Central Maintenance Facility 
was completed. It now houses 
and provides shops for the 
diversified craft skills which 
uphold the rigid maintenance 
requirements of the fifth busiest 
airport in the nation. 

Progress in the construction 
of the North Terminal Complex 
became dramatically apparent 
as the exterior of the building 
took shape. This handsome 
structure will provide San 
Francisco with a new terminal 
facility to meet the demands of 
increasing passenger loads and 
wide-bodied aircraft. 

Instrumentation of the 
primary landing runway, 28R, 
was completed, giving San 
Francisco International the 
capability of conducting com- 
pletely automated landing 




operations during periods when 
visibility is close to zero. 

San Francisco International's 
annual passenger traffic figures 
continued to increase. 
18,166,956 air travelers utilized 
the Airport in Fiscal Year 
1975-76, while 19,334,703 
passed through in FY 1976-77. 
Airport planners, along with 
regional, state and federal 
planners, forecast this growth 
five to ten years ago, and current 
Airport terminal usage confirms 
those forecasts. 

This continuing increase in 
air passengers demanding fast, 
efficient and safe air transpor- 
tation requires that we move 
forward as rapidly as possible to 
complete the development and 
improvement of San Francisco 
International's passenger 
terminal complex. 

Unless past practices are 
substantially changed, increas- 
ing air transportation will bring 
with it an increasing burden of 
noise, pollution, and congestion 
on the surrounding areas. The 
future will thus require a higher 
level of commitment and more 
effective actions on the part of 
all of us who are part of the 
industry to eliminate those 
burdens where possible and to 
alleviate them in all other cases. 
The human creativity which 
created history's most efficient 
transportation system can 
certainly be utilized to mitigate 
the adverse consequences of 
that system. Our challenge for 
the next few years will be to 
continue providing safe, 
comfortable, convenient, 
pleasant and efficient facilities 
for the traveling public while 
substantially reducing the 
adverse impact of increasing 
air travel on the surrounding 
communities. As the San Fran- 
cisco Airport moves into its 
second half century of operation, 
actions needed to meet these 
challenges are being evaluated 
and instituted. 





M.F. Bagan 
Deputy Director 
Operations and Maintenance 




Robert G. Lee 
Deputy Director 
Planning and Development 



Richard R. Heath 
Director of Airports 



J. Peter Singer 
Deputy Director 
Business and Finance 



S 



OPERATIONS AND 
MAINTENANCE 




MAINTENANCE 



San Francisco International 
operates around the clock every 
day of the year serving an 
estimated forty million persons 
annually passing through the 
terminals. 

To deal with the massive 
maintenance problems which 
arise from heavy public use, and 
to continue providing high 
quality service, the Airport 
inaugurated a new maintenance 
planning system in March 1972 
to coordinate and monitor 
demands made upon main- 
tenance resources. Centered 
around a maintenance 
coordinator, the system 
regulates and monitors service 
requests to the diversified trade 
craft skills of specialized 
maintenance sections. 

Runways, cargo and service 
areas, and terminals complex, 
consists mostly of land fill which 
is subject to uneven subsidence, 
causing unique maintenance 
problems in the intensely 
developed complexity of paved 
areas and underground utilities. 

The maintenance staff is 
made up of 115 qualified people 
of diverse trade craft skills who 
fill the rigid maintenance 
requirements of the fifth busiest 
airport in the free world. 




The Airport's runway 
category III operation allows a 
pilot to execute "hands off" 
landing in all weather condi- 
tions. The maintenance asso- 
ciated with this system is quite 
complex and demands highly 
qualified employees. 



SECURITY 



The security bureau is 
controlled by the operations 
division, which is also assigned 
responsibility for the day-to-day 
maintenance of the airport flight 
and ground service facilities. 





The Airport Police, presently 
150 officers, enforce vehicular 
laws on the roadway system 
around the Airport. Approxi- 
mately 15,000 vehicles come to 
the Airport each day, 90% of 
which are private autos and 
taxis. They provide law enforce- 
ment support to personnel 
engaged in pre-boarding 
screening of passengers and 
baggage, perform foot and 
mobile patrol duties, serve as a 
source of information for the 
public, and respond to 
emergencies of varying natures. 

The Airport Police Depart- 
ment has primary responsibility 
to enforce protection under 
Federal, State, and Local laws 
for 29,000 employees, 20 million 
annual passengers, another 20 
million accompanying visitors, 
San Francisco property valued at 
over $270 million, and millions 
of dollars of tenant property 
(one 747 is worth $22 million). 

The current Airport Police 
Department was born in the 
days of the old terminal in the 
late 1940 s. Airport Attendants 
were hired and 5 to 8 of them 
were assigned to security duties. 
Airport Attendants could be 
assigned to maintenance, air- 
field operations, or police 
duties, depending on prior 
experience. Training was 
minimal; however, some men 
attended professional courses 



on their own time. When Central 
Terminal opened in 1954, the 
department grew to some 12 
men. By the end of the 1950s 
some 10 officers had attended 
the State Peace Officers 
Training Center at St. Mary's 
College for a 200 hour program, 
the standard at the time. 

When the South Terminal 
opened in 1964, the Department 
expanded to 26 men. As the 
department increased in size 
and assumed additional duties, 
police training became more 
critical. A rigorous program 
began in the mid-1960s with 
small groups of officers 
attending the San Francisco 
Police Academy. In 1969 the 
civil service classification 
Airport Policeman was created, 
and Sergeants provided, with 
the department growing to a 
force of 47 men. 

The hijackings of 1969-1972 
alarmed Airport and Federal 
authorities, and in 1972, the 
Federal Aviation Administration 
enacted regulation 107 requir- 
ing all passengers to be 
screened prior to boarding 
commercial aircraft. Federal 
agents and marshals were 
assigned initially as support for 
the screening operation, until 
Airport Police could prepare 
properly for the task. An 
immediate recruitment program 
was implemented and in Jan- 
uary 1974, the 77 member 
Airport Police Department 
assumed passenger screening 
support positions from federal 
officers. The problem of positive 
security remained however, and 
the Airport responded by hiring 
an additional 61 men bringing 
the total to 138 men. These 
officers implemented a rigid 
perimeter program, patrolling 
airfield security fencing and 
controlling access to the airfield. 
This rapid growth brought addi- 
tional attention to training and 
in 1975, 75 officers attended the 
Criminal Justice Training Center 
in Santa Clara County for a 440 
hour peace officer program. 

Future Department growth 
will be required, due to a 



continual expansion of duties, 
and the anticipated opening of 
the North Terminal in late 1978. 
In preparation the Airport Police 
in conjunction with the San 
Francisco Community College 
District has opened the Airport 
Police Academy at the College's 
Airport campus. Officers receive 
440 hours of Peace Officer Stan- 
dard Training prescribed by 
State Law. Since September of 
1976, 72 officers have graduated 
from the Airport Police 
Academy. 

These high caliber, 
professional peace officer 
training programs and organi- 
zational efforts within the 
Airport Police Department will 
insure efficient, professional 
levels of law enforcement 
service which the public has 
every right to expect at San 
Francisco International Airport. 



AIRFIELD 

EMERGENCY 

PROCEDURES 

San Francisco International 
Airport has gained national 
recognition for "Building 1000." 
Named after the radio code 
designation for an aircraft 
disaster, this building houses, in 
a constant state of readiness, the 
most complete set of mobile 
disaster relief equipment 
assembled at any airport in 
the United States. 

Located at the northwest 
edge of the operational airfield, 
the building contains modified 
baggage carts, preloaded with 
every conceivable form of sup- 
plies, sterile water, lights and 
radios — all in an "instant ready" 
condition to respond to any air- 
field emergency. In addition, 
Building" 1000 has been modi- 
fied to accommodate emergency 
medical activities — triage, pre- 
hospital medical treatment, 
coroner services, and control of 
rescue personnel — as well as 
housing all components and 
equipment for a complete 



military mobile surgical 
hospital. 

Airport response measures to 
emergency situations occurring 
on or in close proximity to San 
Francisco International are 
prescribed in the Emergency 
Procedure Manual. The com- 
munications and response 
sections of the Emergency 
Procedures are tested at least 
monthly in "Redcap" exercises. 
These are designed to test 
immediate response to emer- 
gencies by the Airport Fire 
Department crash/rescue units, 
first, second and third level 
supervisors at the Airport, and 
cooperating agencies in com- 
munities neighboring the 
Airport. Full scale "Air Med" 
tests of the entire system 
involving over 25 cooperating 
agencies and in excess of 500 
individuals are held biennially. 

Both these recurrent exer- 
cises result in refinements being 
made to the Emergency Pro- 
cedures, and provide San 
Francisco International with one 
of the finest emergency service 
response systems in the nation. 

One result of this constant 
preparation and realistic train- 
ing was the selection of San 
Francisco International Airport 
by the Aviation Safety Institute 
as one of only four airports in 
the United States to receive the 
Institute's annual award for 
excellence in crash/ fire/rescue 
and medical preparedness. 

Judging for the Aviation 
Safety Institute was conducted 
by a committee of airline pilots 
and doctors who deemed San 
Francisco International to be 
"deserving of eminent recog- 
nition of outstanding efforts to 
prepare for any airport 
emergency." 

The Airports Commission 
and staff of San Francisco 
International gratefully ac- 
knowledge the hard work and 
dedication of all those persons, 
both on and off the Airport, who 
are involved in the emergency 
response system which has been 
developed to such a high level of 
preparedness. 



AIR TERMINAL ACTIVITY 




1975- 76 

A total of 337,750 
arrivals and depar- 
tures took place at 
the Airport for an 
average of over 925 
per day, more than 38 per hour, 
or more than one every two 
minutes day and night, an 
increase of over 2.12% over 
the preceding fiscal year. 

The scheduled air carriers 
averaged almost 800 operations 
per day, more than 33 per hour, 
or more than one every two 
minutes day and night, an 
increase of 1.25% over fiscal 
year 1974-75. 

Passenger traffic reached new 
record levels when 18,166,956 
air travelers passed through the 
South and Central Terminals for 
an increase of 6.64% over the 
17,197,093 reported during 
1974-75. This represented an 
average of 49,772 passengers 
per day through the terminals, 
with holiday peaks estimated at 
more than 70,000 passengers. 

The volume of (IS. Mail 
by air also increased to 
190,282,119 pounds, up 3.87% 
over the 183,191 ,620 pounds 
reported last fiscal year, while air 
express and freight shipments 
increased 2.33% from 
662,119,281 pounds to 
677,514,897 pounds. 

1976- 77 

The number of scheduled air 
carrier operations at San Fran- 
cisco International Airport 
continued a six month downward 
trend and declined 4.52%, or 
12,150 fewer jet arrivals and 



departures than during the 
preceding twelve months. 

Scheduled airlines at San 
Francisco International are 
making greater and more effi- 
cient use of the new, quieter, 
wide-bodied jumbo jets and are 
thereby able to reduce the 
frequency of take-off and 
landing operations. 

Fiscal year air operations of 
338,675 included 256,877 
scheduled jet carrier arrivals and 
departures, 4,808 military 
operations, 30,739 arrival and 
departures by third level air 
carriers, and 46,251 movements 
by non-scheduled civil aircraft. 

Despite the decreased 
number of landings and take- 
offs, the volume of terminal 
passengers for fiscal year 
1976/77 increased 6.43% to 
19,334,730 air travelers, com- 
pared to the 18,166,956 in fiscal 
year 1975-76. 

Airport cargo figures for the 
fiscal year included a U.S. Mail 
increase of 1 .05 percent to 
192,279,641 pounds, while air 
freight and express went up 2.55 
percent to 694,789,886 pounds. 




AIR CARGO 



AIRCRAFT MOVEMENTS 



--So ■■*>, -«v -<?X-^ -<sv v„ -s2k> -<sl. - a. -<sx-t?„ -s. -a, •<?„ 



400 



350 



300 




250 



200 



150 



100 



unds in Millions 



Fiscal Year Ending June 30. 



Thousands 



Air Express and Freight 
0) Mail 



Scheduled 
All Other 



% Change 



14 



1958 


-1.3 


1968 


14.2 


1959 


8.1 


1969 


8.2 


1960 


12.2 


1970 


7.5 


1961 


-11.5 


1971 


-5.0 


1962 


1.9 


1972 


-5.6 


1963 


2.4 


1973 


1.3 


1964 


11.0 


1974 


-6.7 


1965 


0.3 


1975 


-1.5 


1966 


13.1 


1976 


.6 


1967 


5.0 


1977 


.3 



PASSENGER TRAFFIC 




Millions 



19 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 771 
Fiscal Year Ending June 30. 



% Change 



1958 


9.8 


1968 


18.7 


1959 


5.7 


1969 


6.5 


1960 


17.3 


1970 


2.0 


1961 


0.7 


1971 


-2.9 


1962 


13.0 


1972 


3.6 


1963 


11.3 


1973 


10.5 


1964 


17.3 


1974 


5.6 


1965 


12.1 


1975 


0.5 


1966 


20.8 


1976 


5.6 


1967 


12.1 


1977 


6.4 



ENVIRONMENT 



San Francisco 
International Airport 
has historically recog- 
nized an obligation to 
San Franciscans and 
other residents of the Greater 
San Francisco Bay Area to 
provide a safe, convenient and 
compact interface between 
ground and air transportation. 
Airport policy is to take every 
measure to mitigate adverse 
impact on the environment and 
neighboring communities. 
Noise, air and water pollution 
are major issues, requiring 
considerable time, money and 
effort to minimize the impact 
of Airport operations on our 
neighbors. 



In order to qualify for future 
Federal financial assistance 
under the Airport Development 
Aid Program (ADAP), the Air- 
port was obligated to prepare 
and submit to the Federal 
Aviation Administration an 
environmental report evaluating 
the effect of Airport improve- 
ments on the surrounding 
environment. This process 
involves the preparation of an 
Environmental Impact Assess- 
ment Report (EIAR), its review 
by concerned individuals or 
agencies, public hearings to air 
all comments, revisions and 



additions to the document to 
include public comments and 
problem evaluations, and sub- 
mittal to the FAA in its final 
form, the Draft Environmental 
Impact Statement (DEIS). This 
task was completed and ap- 
proved by the Federal Aviation 
Administration on April 18, 
1977. Prior to this, in 
compliance with state law, an 
Environmental Impact Report 
(E.I.R.) was compiled, public 
hearings were held and the 
Report was accepted as final by 
the San Francisco Board of 
Supervisors. 




NOISE MONITORING 

San Francisco International 
Airport is monitoring noise gen- 
erated by aircraft operations at 
13 locations in the cities of Bris- 
bane, South San Francisco, San 
Bruno, Millbrae, Burlingame, 
Hillsborough, and Foster City. 

The Noise Monitoring System 
(NMS) is mandated by the Cali- 
fornia Airport Noise Standards, 
and the quarter million dollar 
system of microphones, com- 
puters and land lines involving 
the most modern and highly 
sophisticated noise measuring 
equipment was tested and 
approved on October 1, 1975 by 
the California Division of Aero- 
nautics as "functioning within 
the required accuracy specified 
in the Noise Standards for 
California airports (Title 4, 
Subchapter 6, California 
Administrative Code)." 

Analysis of noise measure- 
ments taken 120 times per 
minute, 24 hours per day, at 
each of the 13 monitor sites, 
shows that noise levels resulting 
from aircraft operations do not 
exceed the criterion Community 
Noise Equivalent Levels (CNEL) 
in neighboring communities. 
The noise levels established by 
the state regulation were 80 dBA 
CNEL until December 31, 1975, 
when they dropped to 75 dBA 
CNEL, where they will remain 
until December 31, 1980. 

San Francisco International 
Airport has the oldest continu- 
ing Sound Abatement Commit- 
tee (SAC) in the United States. 
This effective group, which 
includes the airlines, Federal 
Aviation Administration (FAA) 
and the Airport, has worked for 
the past 17 years to find ways to 
reduce aircraft noise impact 
through operational changes 
within the Airport's jurisdiction 
and by recommendation to the 
airlines and the FAA. Constant 
vigilance by the SAC has pro- 
duced a significant abatement of 
aircraft noise as qualified by the 
NMS, resulting in compliance 
with mandated state standards. 



Operational noise abatement 
procedures have been instituted 
through the cooperation of 
tenant afrlines and the FAA, and 
generally are geared to over- 
flying San Francisco Bay and 
avoiding neighboring commun- 
ities. All noise abatement flight 
procedures are optional with the 
flight crew. The success San 
Francisco International is 



experiencing in remaining in 
compliance with state mandated 
noise standards is attributed to 
the excellent cooperation and 
assistance afforded by the 
airlines and the FAA. 



WASTE WATER 
QUALITY CONTROL 

The California State Water 
Quality Control Board required 
the Airport's water quality 
control plant to prepare con- 
tingency plans providing 
continuous sewage treatment 
operations during any period of 
emergency. These plans were 
completed during fiscal year 
1975-76 and can be imple- 
mented whenever necessary. 

Having adopted one of the 
nation's most stringent environ- 
mental protection programs, 
San Francisco International 
Airport pays particular attention 
to the disposition of treated 
waste water. Airport rules 
prohibit flushing spilled fuel and 



other waste into storm drains 
and thence into San Francisco 
Bay. Environmental teams of 
Airport industrial waste water 
inspectors insure compliance 
with Airport environmental 
protection regulations by means 
of a thorough inspection and 
monitoring program. 

In a joint effort with 
neighboring communities, the 
Airport completed construction 
of a deep water outfall for 
treated waste water into San 
Francisco Bay. 

On the planning boards is a 
six million dollar industrial 
waste water collection and 
treatment system which will be 
the first waste water quality 
control system in the San 
Francisco Bay Area capable of 



complying with the increasingly 
stringent requirements and 
standards set by the California 
Regional Water Quality Control 
Board for waste water dis- 
charged into San Francisco Bay. 



BUSINESS 
AND FINANCE 



1975/76: 

Where the Money Comes From: 

Parking $4,800,000 



Rentals 



$16,600,000 



Landing Fees 



$9,450,000 



Where the Money Goes: 

Other Expenditures $830,538 



Fixed Charges $1,088,025 



Capital Expenditures $1,331,874 



Repayment to 

General Fund $2,000,000 



Services of 
Other Depts. 



Contractual 
Services 



$2,699,046 



$3,963,805 




Prior Year Surplus $1,019,820 



Other Revenues $1,949,000 



Utilities Services $2,000,000 



Ground 

Transportation $3,587,000 



Concessions 



$3,476,000 



Flight Operations $9,500,000 



Parking and 

U Drive $7,690,000 



Mil limillllll 



9^ 



Debt Service $11,40-5,965 



Payroll and 

Fringe Benefits $9,562,567 



1976/77: 

Where the Money Comes From: 

Ground 

Transportation $635,000 



Prior Year Surplus $438,002 



Other Revenues $2,089,000 



Rentals 



$7,250,000 



Other Expenditures $731,890 



Fixed Charges 



Repayment to 
General Fund 



Services of 
Other Depts. 



$1,052,783 



$2,000,000 



$3,245,640 



Contractual 
Services 



Capital 
Expenditures 



$4,736,362 



$1,430,259 




Utilities Services $2,790,000 



Concessions $3,650,000 



Where the Money Goes: 



Debt Service $ 10,356,035 



1975/76: 
Other Revenues 

Disbursement of 

Security Costs $865,000 
Service Commissions $315,000 

Hotel $297,000 

Service Stations $264,000 

Traffic Fines $ 70,000 

Miscellaneous $138,000 

Other Expenditures 

Materials and Supplies $626,538 
Airport Security $204,000 



Budget Estimates 

Fiscal Year 1975-76 
Fiscal Year 1976-77 



Payroll and 

Fringe Benefits $10,489,033 



1976/77: 
Other Revenues 



Reimbursement of 
Security Costs 



$935,000 



Service Commissions $330,000 



Hotel 

Service Stations 
Miscellaneous 
Traffic Fines 



$264,000 
$325,000 
$150,000 
$ 85,000 



Other Expenditures 

Materials and Supplies $631,890 
Judgements and Claims $100,000 



Accountants' Opinion 



The Honorable John C. Farrell, 

Controller 
City and County of San Francisco 

We have examined the balance sheet of 
the Airports Commission, City and County 
of San Francisco, San Francisco Inter- 
national Airport as of June 30, 1977 and 
1976, and the related statements of 
income, surplus and changes in financial 
position for the years then ended. Our 



examinations were made in accordance 
with generally accepted auditing standards 
and, accordingly, included such tests of the 
accounting records and such other auditing 
procedures as we considered necessary in 
the circumstances. 

In our opinion, the financial statements 
referred to above present fairly the financial 
position of the Airports Commission, City 
and County of San Francisco, San Fran- 
cisco International Airport at June 30, 1977 
and 1976, and the results of its operations 



and changes in its financial position for 
the years then ended, in conformity with 
generally accepted accounting principles 
applied on a consistent basis. 

Main Lafrentz & Co. 



San Francisco, 

California 
September 21, 1977 



In reference to financial statement beginning page 24, et seq. 



The range of activities 
and the size of the 
budget make the Air- 
port comparable in 
many respects to a 
city, although it has no taxing 
power. It is, nevertheless, self- 
supporting through a combi- 
nation of user charges, rents, 
commissions and fees equitably 
distributed between airlines, 
other tenants, and conces- 
sionaires. These sources have, 
since 1957, annually balanced 
an expenditure budget which 
not only covered all admini- 
strative, operating and 
maintenance disbursements, 
but also provided for some "pay 
as you go" additions and 
betterments as well as 
repayments to San Francisco for 
investment of City funds in the 
Airport prior to 1957, and debt 
service on all outstanding 
general obligation and revenue 
bonds issued for Airport 
purposes. 

During fiscal year 1975-76 
San Francisco International 
disbursed $36,180,829 for 
operating expenses, bond 
interest and redemption, 
reconstruction and replace- 
ments, additions and better- 
ments, and repayment to the 
General Fund. The Airport 
planned its activities, operations 
and expenditures judiciously 
within the revenue estimates in 
the 1975-76 budget. 

During Fiscal Year 1976-77 
San Francisco International 
disbursed $17,379, 182 for 
operating expenses, $3,625,612 
for additions and betterments, 
reconstruction and replacement, 
plus $15,176,035 for bond debt 
service and repayment to the 
General Fund. These costs were 



covered by Airport revenues of 
$35,644,909 and surplus from 
previous years. 

During the 1976-77 fiscal 
year the Real Estate Branch of 
the Business Administration 
Division completed contractual 
assignments in the following 
work-unit categories: Leases- 
45, Permits-72, Special 
Agreements- 12. Records con- 
trol for 110 Airport tenants is 
provided on a daily basis in 
connection with 111 Leases, 151 
Permits, 21 Special Contracts, 
126 Performance Bonds, and 
350 Insurance Policies or 
Certificates in effect on June 30, 
1977. 

CAPITAL 

IMPROVEMENTS 

PROGRAM 

Some 40 City contracts were 
completed in the 1975-76 fiscal 
year, representing about $14 
million worth of improvements. 
The largest projects were the 
North Terminal foundations and 
the garage foundations, valued 
at over $7 million. An additional 
20 City contracts were com- 



1 . Garage Addition Modifications 

2. North Terminal 

3. North Terminal Aprons 
4. 
5. 

6. Electrical Distribution System 



pleted in the 1976-77 fiscal year 
representing close to $6.2 
million worth of improvements. 
The largest project was a portion 
of the garage expansion valued 
at over $3.7 million. 

Currently in the planning 
stage is a very active construc- 
tion schedule comprised of 
approximately 40 new projects 
scheduled to begin in fiscal year 
1977-78, valued at $17 million. 



TENANT 
CONTRACTS 

Tenant construction has been 
very active. 90 projects were 
completed during the past year 
by various airlines, rental car 
agencies, and Airport services 
totalling $11 million with the 
majority of work being per- 
formed by Hilton Inn, Host 
International, and Gnited 
Airlines. At the end of fiscal 
year 1976-77, 43 projects 
valued at approximately $16.2 
million were in progress with 
Gnited Airlines projects 
accounting for over $13 
million of the work. 



$64,592,000 
20,229,000 
8,132,000 
20,789,000 
681,000 
3,897.000 
2,272.000 



7. Reconstruction of portions of Runway 28L 



Major capital improvements projects now in progress include: 



Boarding Areas H and I and Connector 
Central Heating and Cooling Plant Equipment 



Balance Sheet June 30, 1977 and 1976 



Assets 

Current assets 

Cash — Airport Operating Fund 

Accounts receivable (less allowance for 
doubtful accounts of $133,574 and 

$269,174) 

Interfund accounts receivable 

Material supplies inventory 

Prepaid expenses 

Total current assets . . . . 

Restricted assets (Notes 2, 3 and 4) 

Bond Redemption and Interest Funds . . . . 

Special Aviation Fund 

1956 Airport Bond Fund 

1962 Airport Bond Fund 

1967 Airport Bond Fund 

1975 Airport Revenue Bond Fund 

Federal Aviation Administration Project . . 
Airport Revenue Bond Reserve Fund . . . . 
Accrued interest — Revenue Bond Fund 

investments 

Airport Revenue Bond Contingencies 

Reserve Fund 

General Obligation Bond Trust Fund 



Property, plant and equipment, 
net (Notes 1 and 5) 

Other assets 

Federal grants receivable — subject to 

approval by various agencies 

Less reserve for grants receivable 



Statement of Income June 30, 1977 and 1976 



Operating revenue 

Aviation revenue 

Concession revenue 

Sales and services — net 

Total operating revenues . . . 

Operating expenses 

Administrative 

Maintenance 

Operating 

Depreciation and amortization 

Total operating expenses . . . 

Operating income 

Other income 

Other expense — interest 

Met income 

Note: The retirement of debt relies upon the 
generation of net. income. The distribution of 
funds derived from operations to the retire- 
ment of debt is summarized as follows: 

Payment of bonded debt 

Repayment to the General Fund of the City 
and County of San Francisco 

Net income 

Excess of debt retirement over net income .... 

The accompanying notes are an integral 
part of these financial statements. 



1977 

$ 3.656.493 



3.684.582 
69.600 
77.509 
81,637 

7,569,821 



15,545 
22.985 
60,733 
90,432 
19,304,270 
95,975,828 
11,920.304 
12,578.836 

851,059 

5,000.000 
820,000 

146,639,992 



211.599.750 



10.493.503 
10,493,503 



$365,809,563 



1977 

$17,003,683 
14,245.804 
1,491,942 

32,741,429 



2,677.096 
5,498.813 
8.638.982 
4,756,400 

21,571,291 

11,170,138 

73,401 

2,695,123 

$ 8,548,416 



$ 6,635,000 

4,000,000 
10,635,000 
8,548,416 

$ 2,086.584 



1976 

$ 13,357,432 



2,622,637 
72,491 
81.913 
71.123 

16,205,596 



55,344 
12.985 
60,733 
90,432 
34,215,036 
130.657,125 
2,428,676 
12,246,933 

1,621,827 



181,389,091 



165.316,811 



2,606.767 
2,606,767 



$362,911,498 



1976 

$16,634,932 
12,635,930 
1,510,838 

30,781,700 



2,705,837 
5,018,359 
7.939.644 
4,182,149 

19,845,989 

10,935,711 

200,935 

2,502,389 

$ 8,634,257 



$ 7,335,000 

2,000,000 
9,335,000 
8,634,257 

5 700,743 



Balance Sheet June 30, 1977 and 1976 



Liabilities and Surplus 



Current liabilities 

Bonded debt maturing within one 

year (Note 7) 

Outstanding warrants 

Accounts payable 

Accrued payroll and payroll deductions 

Interfund accounts payable 

Due to the General Fund of the City 

and County of San Francisco (Note 6) 

Accrued bond interest payable 

Rent collected in advance and other 

Total current liabilities 

Liabilities payable from 
restricted assets 

Contractor retentions payable 

Other 

Bonded debt, less current maturities (Note 7) . . 

Due to the General Fund of the City 
and County of San Francisco, less current 
maturity (Note 6) 

Rent collected in advance, less current maturity . 

Commitments and contingent liabilities 
(Notes 10 and 11) 

Surplus (Note 8) 



Statement of Surplus June 30, 1977 and 1976 



Year ended June 30, 1976 

Balance at beginning of year 

Net income 

Contributions received 

Federal government grants 

State of California — 
Special Aviation Fund 

Balance at end of year 

Year ended June 30, 1977 

Net income 

Contributions received 
Federal government grants 
State of California — 

Special Aviation Funding . . 

Airlines 

Write-off of architectural 
and engineering fees (Note 8) . 

Balance at end of year 



Contributions 

$57,969,019 

1,350,400 
5,000 



59,324,419 



1,605,606 

5.000 
640,877 



$61,575,902 



The accompanying notes are an integral 
part of these financial statements. 



1977 



$ 6,440,000 
715,498 
276,661 
461,447 
690,012 

2,000,000 
2,844,424 
385,778 

13,813,820 



4,064,165 
2,100,568 

6,164,733 

204,300,000 



8,388,104 
185,860 

132,957,046 
$365,809,563 



Surplus from 

Airport 
Operations 



$55,402,950 
8,634,257 



64,037,207 



8,548,416 



(1,204,479 ) 
71,381,144 

(1,204,479 ) 
$132,957,046 



1976 
(Reclassified) 



6,635,000 
488,006 
530,073 
261,846 

1,316,357 

2,000,000 
2,990,811 
257,933 

14,480,026 



409,779 
1.243,493 

1,653,272 

210,740,000 



12,388,104 
288,470 

123,361,626 
$362,911,498 



Total 

$113,371,969 
8,634,257 

1,350,400 

5,000 

123.361.626 

8,548,416 

1 .605.606 

5.000 
640,877 

(1,204,479 

$132,957,046 



Changes in Financial Position 
Years Ended June 30, 1977 and 1976 



Working capital provided from 

Net income 

Add charges (deduct credits) against 
earnings not affecting working capital 

Depreciation and amortization 

Amortization of rent collected in advance 
Write-off of architectural and 
engineering fees to surplus 

Working capital provided 
from operations 

Increase in liabilities payable from 
restricted assets 

Proceeds from issuance of 1975 
Revenue Bonds, Series A 

Contributions received 

Decrease in bonded debt maturing within 
one year, net of matured bonds 

Decrease in restricted assets 

Total working capital provided 

Working capital used for 

Decrease in liabilities payable from 
restricted assets 

Increase in restricted assets 

Acquisition of property, plant and 
equipment 

Reduction of bonded debt 

Reduction of amount due to the General 
Fund of the City and County of 
San Francisco 

Total working capital used .... 

Increase (decrease) in working capital 

Increase (decrease) in working 
capital consisted of 

Cash 

Accounts receivable 

Interfund accounts receivable 

Material supplies inventory 

Prepaid expenses 

Bonded debt maturing within one year . . 

Outstanding warrants 

Accounts payable 

Accrued payroll and payroll deductions . . 

Interfund accounts payable 

Accrued bond interest payable 

Rent collected in advance and other . . . i 



1977 



$ 8,548,416 



4,756,400 
(102,610) 

(1,204,479 ) 



11,997,727 

4,511,461 

2,251,483 

34,749,099 
53,509,770 



51,039,339 
6,440,000 



4,000,000 
61,479,339 
$ (7,969,569) 



$(9,700,939) 
1,061,945 
(2,891) 
(4,404) 
10,514 
195,000 
(227,492) 
253,412 
(199,601) 
626,345 
146, 387 
(127,845 ) 

$(7,969,569 ) 



1976 
(Reclassified) 



$ 8,634,257 



4,182,149 
(102,610) 



12,713,796 



143,475,000 
1,355,400 

665,000 



158,209,196 



2,721,290 
124,223,723 

18,145,248 
7,300,000 



2,000,000 
154,390,261 
$ 3,818,935 



$ 4,310,056 
(87,546) 
72,491 
7,945 
(17,693) 
700,000 
335,190 
835,141 
(46,955) 
(489,022) 
(1,702,182) 
(98,490 ) 

$ 3,818,935 



The accompanying notes are an integral 
part of these financial statements. 



Notes to Financial Statements June 30, 1977 and 1976 



Summary of Significant Accounting Policies 

Organization and method of accounting — The San 

Francisco International Airport (Airport) is a public service 
enterprise of the City and County of San Francisco. 
Responsibility for maintenance, operation and development 
of the Airport has been vested in a five member Commission. 
Commission members are appointed by the Mayor for 
four-year terms. 

The accounting records are maintained on the 
accrual basis. 

Reclassifications — Contractor retentions payable and 
other liabilities payable from restricted assets have been 
reclassified from current liabilities for the year ended June 
30, 1976. The reclassifications were made since such 
liabilities are not payable from operating funds. 

Revenue recognition — Lease revenue from the rental of 
building spaces, ground areas and facilities is accounted for 
under the "operating method." Under this method, lease 
revenue is earned as it becomes due over the term of the 
lease, and the related expenses including depreciation and 
maintenance are included in operating expense as incurred. 

Depreciation — Depreciation of plant and equipment is 
computed using the straight-line method over the estimated 
useful lives of the assets. Depreciation charges begin in the 
year following acquisition or the completion of construction, 
at which time a full year's depreciation is taken. 

The charter of the City and County of San Francisco 
provides that an appraisal of property, plant and equipment, 
which includes an inspection of the properties and a review of 
estimated remaining life and depreciated value, is to be made 
at five year intervals to determine reasonable annual depre- 
ciation. The last appraisal was made as of June 30, 1973, and 
depreciation since that date has been based on rates 
established therein. 

Capitalization of interest — Interest on the 1967 and 
1975 Bond Funds used for construction is capitalized during 
the construction period. Earnings on 1975 Revenue Bond 
Funds are applied to reduce interest capitalized. Interest 
capitalized in 1977 was $3,620,559, net of interest earnings of 
$7,925,972. Interest capitalized in 1976 was $1,512,800, 
net of interest earnings of 3,444,392. 

Pension plan — The Airport participates in the City and 
County of San Francisco's compulsory contributory retire- 
ment plan for all permanent employees. 

Interest Earned on Cash on Deposit with 
the City Treasurer 

As provided in the Charter of the City and County of San 
Francisco, interest on cash deposited with the City Treasurer 
accrues to the benefit of the City and County, except for 
interest earned from the deposit of specific purpose funds. 
Such interest accrues to the benefit of the utility depositing 
the specific purpose funds. 

It is the policy of the City Treasurer not to accrue to the 
Airport the interest earned on Airport deposits (except for 
interest earned on the 1975 Revenue Bond Fund) since 
various services are provided to the Airport by City 
Department at no cost. 

Revenue Bond Reserve Fund 

Cinder the terms of the Master Resolution providing for the 
issuance of Airport Revenue Bonds, the Airport is required to 
deposit with a trustee an amount which equals or exceeds the 
maximum debt service accruing in any one year during the 
life of the bonds, which amount is $12,210,905. As of June 
30, 1977 the actual amount on deposit with the trustee was 
$12,578,836, which includes $367,931 deposited with the 
trustee for which interest coupons have not been redeemed. 



Revenue Bond Contingencies Reserve Fund 

During 1977 the Airport was required to establish a 
"Contingencies Reserve Fund" of $5,000,000 in order to 
comply with the terms of the Master Bond Resolution relative 
to the 1975 Revenue Bonds. The monies are held by the 
Treasurer of the City and County of San Francisco and are 
to be used "... (1) to pay any costs of required extensions, 
additions, improvements, renewals, and replacements neces- 
sary to the proper operation of the Airport, arising as a result 
of unforeseen circumstances or events; (2) to pay the costs 
of extraordinary or emergency operations and maintenance 
expenses and repairs; (3) to pay principal and interest on the 
Bonds when and if moneys in the Interest Fund and the 
Redemption Fund shall not be sufficient for such payments; 
(4) to pay any Bonds or other obligations payable from Net 
Revenues, if such payment is necessary to prevent any default 
in the payment of such obligations; and (5) as a source of 
funds if at any time Revenues are inadequate to meet the 
foregoing priorities or until such time as airline rates and 
charges are adjusted to produce adequate Revenues for the 
above purposes." 



Property, Plant and Equipment 

At June 30, 1977 and 1976, property, plant and 
equipment, stated at cost less accumulated depreciation and 
amortization, consisted of the following: 

Estimated 

1977 1976 Useful Life 

(Years) 

Land and 



easements 


$ 2,315,910 


2 2,315,910 






Landplane port 


168,003,613 


166,225,217 


2- 


-50 


Seaplane port 


1,847,257 


1 ,847,257 


5- 


-30 


Equipment 


2,943,423 


2,829,395 


5- 


-20 




175,110,203 


173,217,779 






Less depreciation 










and amortization 


59,636,653 


54,431,007 








115,473,550 


118,786,772 






Construction work 










in progress 


96,126,200 


46,530,039 








$211,599,750 


$165,316,811 







Due to the General Fund of the City and County 
of San Francisco 

As of July 1 , 1973, the Airport recorded as a liability its 
obligation to repay the sum of $24,388,104 into the General 
Fund of the City and County of San Francisco. This amount 
represents contributions previously received from the General 
Fund and used by the Airport for the payment of interest on 
and principal of general obligation bonds issued by the City 
and County of San Francisco for the acquisition, construction 
and improvements of the Airport. The adjustment for this 
liability was made by a charge of $24,388,104 to Surplus from 
Airport Operations. The repayment plan calls for annual 
payments of $2,000,000 until the full amount has been repaid. 
On July 6, 1976, the Airports Commissions approved an ac- 
celerated payment of $2,000,000 from the Airport Revenue 
Funds, the effect of which is to increase such payments for the 
fiscal year ending June 30, 1977 to $4,000,000. 



Notes to Financial Statements 
June 30, 1977 and 1976 



Bonded Debt 

At June 30, 1977 and 1976, bonded debt consisted ot: 



Description 

General Obligations Bonds 

1956 Airport Bonds: 
Series D 
Series E 



1962 Airport Bonds: 
Series A 

1967 Airport Bonds: 
Series B 
Series C 
Series D 
Series E 



Revenue Bonds 

1975 Airport Bonds: 
Series A 



Less current maturities 



7/1/61 
3/1/62 



4/1/63 



2/1/69 
2/1/70 
2/1/72 
5/1/74 



3/1/76 



The bonds are term and serial in nature and mature as follows: 



Serial 

1978 

1979 

1980 

1981 

1982-1986 
1987-1991 
1992-1996 
1997-1998 

Term 
2008 



Interest 
Rate (%) 



3-3 Va 
2 3 / 4 -3 



2'A-2% 



4 1 /«-4'/2 
6.0 

3.7-5.2 
5.3-6.0 



6.8-8 Va 



General 
Obligation 
Bonds 



$ 6,440 
5,640 
5,640 
5,640 
24,300 
13,680 
5,925 



$67,265 



1977 



800,000 



5,600,000 
16,600,000 
17,150,000 
27,115,000 

66,465,000 



143,475,000 

210,740,000 
6,440,000 

$204,300,000 



Revenue 
Bonds 
(In thousands) 



1,520 
1,625 
1,740 
10,700 
15,005 
21,045 
10,630 



81,210 



$143,475 



1976 



$ 500,000 
350,000 

850,000 



1.600,000 



6,400.000 
18,700,000 
17,640,000 
28,710,000 

71,450,000 



143,475,000 

217,375,000 
6,635,000 

$210,740,000 



Total 



$ 6,440 
7,160 
7,265 
7,380 
35,000 
28,685 
26,970 
10,630 

81,210 

$210,740 



Notes to Financial Statements June 30, 1977 and 1976 



The 1975 Airport Revenue Bonds, Series A, were issued in 
connection with the long range expansion program which is 
expected to be completed in 1984. Total costs of this expan- 
sion program will be financed by funds to be provided from 
Airport revenues, residual proceeds of general obligation 
bonds of the City and County of San Francisco previously 
issued and proceeds of additional Airport Revenue 
Bond issues. 

The terms covering the 1975 Revenue Bonds provide that 
the Airports Commission will maintain rates and fees at an 
adequate annual level to allow proper debt servicing on all 
bonds outstanding plus repaying amounts due the General 
Fund of the City and County of San Francisco. In addition, the 
use of revenues is limited to the priorities set forth in 
the Master Resolution, dated March 20, 1973, providing for 
the issuance of Airport Revenue Bonds. While these bonds 
are outstanding, the Airport may not create liens on its 
property essential to operations, may not dispose of any 
property essential to maintaining revenues or operating the 
Airport, and must maintain adequate insurance as specified. 

The Airports Commission has adopted a resolution creat- 
ing a bond sinking fund for the General Obligation Bonds. 
Annual sinking fund payments of $820,000 commenced in 
1977 and continue through 1988. Such amounts plus invest- 
ment income derived therefrom will be required to redeem 
principal and interest on bonds maturing from 1989 through 
1994 totalling approximately $16,370,000. 



Contingent Liabilities and Litigation 

The Airport was contingently liable in connection with 
various contractor claims and other matters with total claims 
approximating $3,160,000 at June 30, 1977. In the opinion of 
the City Attorney, the ultimate liability is not ascertainable at 
this time; however, the potential liability is estimated at 
approximately $360,000. 

Major types of insurance are placed with independent 
carriers. The Airport, however, acts as self-insurer against 
losses from worker's compensation claims and certain other 
liability, property and casualty losses. Liability for claims is 
charged against current operations in the year the amount 
becomes known. 



Commitments 

Purchase commitments for construction, materials and 
services at June 30, 1977 are approximately $88,000,000, 
substantially all of which are payable from restricted assets. 

The Airport sublets certain real property from Hughes 
Airwest which is leased to Hughes Airwest by the Airport. The 
terms of the lease and sublease require minimum annual 
rentals through October, 2005 as follows: 



Surplus 

During the year ended June 30, 1977, a charge was made to 
Surplus in the amount of $1,204,479. This amount resulted 
from the write-off of architectural and engineering fees on 
abandoned construction projects which were paid out of the 
1967 Bond Fund. The abandonments occurred in connection 
with the re-evaluation of the expansion program and the 
adoption, in April, 1977, of the Modernization and Replace- 
ment Phase of the Airport expansion programs. 



Pension Costs 



Rental 



Rental 



Net Rental 



Fiscal Year 


Expense 


Income 


Expense 


1978 




$ 218,226 


$ 129,195 


$ 89,031 


1979 




211,415 


126,848 


84,567 


1980 




211,415 


126,848 


84,567 


1981 




211,415 


126,848 


84.567 


1982 




211,415 


126,848 


84,567 


1983- 


-1987 


932,926 


435,819 


497.107 


1988- 


-1992 


724,927 




724,927 


1993- 


-1997 


575,420 




575.420 


1998- 


-2005 


1 ,250,868 




1,250,868 






$4,548,027 


$1,072,406 


$3,475,621 



Contributory retirement plan contributions included in 
operating expenses were approximately $ 1 ,300,000 for each 
of the fiscal years 1977 and 1976, respectively. Employer 
contribution rates are established by the Employees' Retire- 
ment System, City and County of San Francisco, based on 
actuarial valuations which take into consideration both 
unfunded past service costs and current costs. 



Net rental expense was $89,031 and $82,710 for fiscal years 
1977 and 1976, respectively. 



Supplementary Information 



Accountants' Opinion 

Our examinations of the basic financial statements presented 
in the preceding section of this report were made primarily to 
form an opinion on such financial statements taken as a whole. 
Supplementary information, contained in the following pages, 
is not considered essential for the fair presentation of the 
financial position of the Airports Commission, City and County 
of San Francisco. San Francisco International Airport or the 
results of its operations or the changes in its financial position 
in conformity with generally accepted accounting principles. 
However, the following data were subjected to audit procedures 
applied in the examination of the basic financial statements 
and, in our opinion, are fairly stated in all material respects 
in relation to the basic financial statements taken as a whole. 



Main Lafrentz & Co. 
Certified Public Accountants 

San Francisco, California 
September 21, 1977 



Property, Plant and Equipment June 30, 1977 



Property, Plant, 
and Equipment 



Land and Easements: 

Land 

Easements 



$ 2,029,008 
286,902 

2,315,910 



Landplane Port 

Landing areas: 

Land reclamation and improvements 27,206,064 

Field drainage 5.385,971 

Drainage control 1,996.958 

Runways, taxiways and apron 34,549,297 

Landing field lighting and marking 4,030,610 

73,168,900 

Utilities, roads and parking areas: 

Roads, walks, parking areas, fences, etc 19,469,081 

Water supply system 1,785,134 

Sewage system 5,616,042 

Power supply and street lighting system 4,209.653 

Telephone system, field areas 534,038 

Gas supply system 6,119 

Bridges and culverts 4,238,325 

Landscaping 63,088 

Gasoline line and storage 107,134 

Miscellaneous items 88, 1 22 

36,116,736 

Buildings, including parking facility 57,515,585 

Capitalized interest 1,202,392 

168,003,613 

Seaplane Port: 

Landingareas 1,501,325 

Utilities 297,059 

Equipment and other 48,873 

1,847,257 

Equipment: 

Office furniture and appliances 434,616 

Shop tools and building maintenance 255,932 

Fire fighting 661,812 

Motor driven f . . 797,183 

Meteorological 667 

Sewage pump house 18,930 

•Radio 415,617 

Engineering 34,917 

Other _ 323,749 

2,943,423 

Construction in Progress 96,126,200 

$271,236,403 



Accumulated 
Depreciation 
and Amortization 



$ 471.376 
3,248.489 
947,542 
14,333.005 
2,185,391 

21,185,803 



4,720,379 
840.986 
1,332.357 
1,841,422 
279,672 
1,530 
606.852 
31,539 
107,134 
32,942 

9,794,813 

26,249,097 
174.958 
57,404.671 



419,883 
297.073 
48,873 
765.829 



253.564 
56,01 1 
381.125 
399,217 
193 
6.230 
131,264 
22.636 
215.913 
,466.153 



$59,636,653 



Estimated 
Useful Lives 
(in Years) 



10 
20-40 
10-30 
3-20 
5-15 



2-40 
5-30 
5-40 
5-30 
20-30 

20 
30-50 
10-20 
30 
5-10 



5-40 
40 



10-30 
5-25 
15-25 



10 

5-20 
5-10 
5-10 
10 

5-10 
5-15 
2-10 
5-15 



Operating Revenue June 30, 1977 and 1976 

Aviation activities: 

Air carrier flight operations 

Rents: 

Office space — passenger terminal buildings 

Office space — air mail and cargo buildings 

Paved and unimproved areas 

Hangars 

Other buildings and structures 

Aircraft outdoor storage 



Fuel and oil: 

Delivery permits 
Tank farm rental 



Concessions: 

Public parking 

Automobile rentals 

News, tobacco and gift shops .... 
Restaurant, bar and allied services 
Limousine, taxi and bus service . . 

Hotel 

Automobile service station 

Sale of petroleum products 

Insurance 

Telephone commissions 

Miscellaneous retail stores 

Advertising 

Other 



Sales and services, net: 

Gate security 

Electricity (less cost of sales of $2,682,762 

in 1977 and $2, 197,598 in 1976) 

Water and steam (less cost of sales of 

$166,209 in 1977 and $107,109 in 1976) 

Fine and forfeitures 

Miscellaneous 



Operating Expenses June 30, 1977 and 1976 

Administrative : 

Salaries, wages and payroll benefits 

Real estate taxes (less charges to tenants 

of $61,647 in 1977 and $38,576 in 1976) 

Legal and professional services 

Insurance 

Employee transportation 

Telephone and telegraph 

Printing, stationery and postage 

Data processing service 

Provision for doubtful receivables 

Travel, conventions and conferences 

Other 



Maintenance : 

Salaries, wages and payroll benefits 

General maintenance 

Automobile and other facilities . . . 
Operating supplies and materials . . 
Purchasing and other departments . 



Operating: 

Salaries, wages and payroll benefits 

Fire department services 

Services — Bureau of Engineering 

Utilities 

Shuttle bus services 

Contractual security services 

Rent 

Refuse disposal (less charges to tenants 

of $10,711 in 1977 and $11,027 in 1976) . 
Other 



1977 



$ 9,657,621 

4,658,449 
670,682 

1,135,871 
479,034 
161,851 
82,462 

7,188,349 



60,408 
97,305 

157,713 

$17,003,683 



$ 5,637,304 
3,144,294 
1,920,214 
1,320,923 
765,603 
382,930 
304,272 
247,149 
100,497 
116,696 
144,115 
116,106 
45,701 

$14,245,804 



$ 818,249 

428,283 

101,235 
106,978 
37,197 

$ 1,491,942 



$1,220,667 

531,810 
595,639 
211,435 
13,139 
111,851 
37,335 
49,460 
(135,600) 
15,960 
25,400 

$2,677,096 



$4,275,546 
933,592 
181,680 
101,585 
6,410 

$5,498,813 



$3,766,527 
2,184,885 
795,055 
680,063 
795,473 
4,174 
215.079 

19,964 
177,762 

$8,638,982 



1976 



$ 9,162,534 

4,633,677 
803,229 

1,206,886 
441,422 
167,641 
78,111 

7,330,966 



76,699 
64,733 

141,432 

$16,634,932 



$4,912,086 
2,712,117 
1,654,419 
1,276,114 
682,738, 
298,747 
275,358 
231,049 
100,852 
121,827 
134,180 
107,132 
129,311 

$12,635,930 



$ 902,503 

397,931 

107,657 
96,657 
6,090 

$ 1,510,838 



$1,161,040 

526,080 
485,304 
203,573 
88,883 
109,058 
56,571 
29,480 
14,400 
8,886 
22,562 

$2,705,837 



$4,112,654 
578,822 
155,072 
135,006 
36,805 

$5,018,359 



$3,604,427 
1 ,986,269 
599,890 
562,700 
690,284 
86,149 
213.604 

14,703 
181,618 

$7,939,644 



PLANNING AND 
DEVELOPMENT 



PLANNING 




The Planning Divi- 
sion is divided into 
three branches: 
Planning, Engi- 
neering and 
Construction, comprised of 
approximately 100 civil service 
employees. Specialized con- 
sulting firms are employed to 
perform various design and 
construction administration 
functions connected with 
improvements and develop- 
ments described in the Airport 
Expansion Program. 

The Planning Branch 
conducts long range planning 
and development of the Airport 
master plan. This branch works 
with tenant airlines to anticipate 
requirements; makes land use 
and other Airport related 
studies; maintains liaison with 



State agencies and adjacent 
communities; reviews improve- 
ment projects for compliance 
with master planning and 
environmental determination; 
and maintains and administers 
project control and construction 
scheduling related to the Airport 
Capital Improvement Program. 



LAND USE PLAN: The 
Airports Commission, with 
coordinated effort from San 
Mateo County, established the 
framework from which to 
develop a land use plan for areas 
affected by Airport operations. 
This plan is being developed 
through joint membership of a 
governing body, the Board of 
Control, which is made up of 




representatives from both San 
Mateo County and the City and 
County of San Francisco. The 
study is expected to begin in 
November 1977 and be com- 
pleted in 2 years. 



MASTER PLAN: Many 
elements are integrated into the 
system referred to as the master 
plan. Items which have become 
major categories during fiscal 
years 1975-76 and 1976-77 
include: 



Mass transit studies and pro- 
visions for access from Daly 
City through the Airport to 
points further south; 
Provisions for more efficient 
public access to the Airport in 
conjunction with the State 
Department of Trans- 
portation; 

A master plan project for air 
cargo facilities, 
Design criteria for the North 
Terminal apron; 
A new FAA tower and 
improvements to existing 
Central and South Terminals; 
A construction plan and 
sequence for the anticipated 
terminal improvements to 
accommodate relocation of 
tenant airlines. 



CONSTRUCTION 



The Construction 
Branch administers 
construction con- 
tracts; provides 
inspection, survey, 
and testing laboratory services 
necessary to administer con- 
struction programs; reviews 
plans and specifications related 
to construction techniques and 
work scheduling; coordinates 
construction techniques and 
work scheduling; coordinates 
construction work with other 
Airport departments; and 
maintains records of all 
work completed. 

The Engineering Branch 
develops plans and specifi- 
cations for construction 
contracts relating to civil, 
structural, mechanical, elec- 
trical, architectural, and water 
quality control projects; 
develops and administers 
professional ser* •ces contracts 
with specialized consultants; 
and reviews, monitors and 
polices all operations to main- 
tain conformity with Regional 
Water Quality Control Board 
standards. 

Capital Improvement Program 
progress at San Francisco Inter- 
national involved 53 projects 
valued at over $67 million. 
During 1975-1976, airport work 
valued at nearly $14 million was 
completed. The North Terminal 
foundations and garage foun- 
dations are valued at over $7 
million. 

Construction Management 
Consultants, Inc., continues to 
assist with major terminal con- 
struction projects of the 
Airport's development program. 
By the close of the 1975-76 
fiscal year, completed construc- 



tion under the program totaled 
over $41 million, construction 
work in progress was valued at 
$52.8 million, and $56 million 
in projects was scheduled for 
the coming fiscal year. 

Converting a former aircraft 
hangar into the Central Main- 
tenance Facility building, at a 
cost of $2,420,472, was a major 
construction highlight. This new 
building now houses the Airport 
maintenance force and provides 
the necessary specialized equip- 
ment and facilities required to 





maintain the Airport on a 24 
hour a day basis. 

A highly sophisticated 
Category 1HA instrument land- 
ing system was installed on 
Runway 28R, providing San 
Francisco International with the 
last word in available landing 
systems, and the capability of 
continuing landing operations 
under conditions of extremely 
limited visibility. 

Additions and improvements 
included projects to increase 
terminal efficiency and comfort, 
as well as improve the aircraft 
handling capability of the 
airfield. 




American 




Stol Air 



Trans World 




r 



Hughes Air West 



Philippine 






Pacific Southwest 



Swift Aire 



United 



Northwest Orient 



Commuter Lines 

Cal Air 
Stol Air 
Swift Aire 



NONSTOP SERVICE TO: 



O Seattle 

O Tacoma Q Spokai 




O Eureka 

O Redding O Reno 
O Sacramento 
O Stockton 
• SFIA OYosemite 
O Modesto 
O San Jose 

O Fresno 
O Monterey O Las Vegas 
O Bakersf ield 
O Santa Barbara 
O Ontario 
O Los Angeles p noenix 

O Tucson 



O Honolulu 



International Destinations 



Aukland 

Calgary/ Edmonton 

London 

Manila 



Sydney 
Tokyo 
Taipei 
Vancouver 



Published by the Public Relations Officer 
San Francisco International Airport 
Design: Communigraphics, San Francisco 
Photography: Ed Hoffman, Hal Randall